Washington, DC (January 23, 2025) – THE National Federation of Independent Business (NFIB), The nation’s leading small business advocacy organization strongly supports the Main Street Tax Certainty Act, Legislation reintroduced today by Senator Steve Daines (MT) and Representative Lloyd Smucker (PA-11). This legislation would make the 20% small business deduction permanent and stop a massive tax increase on Main Street planned for the end of this year.
“If Congress fails to act, more than 30 million small businesses will face a massive tax increase at the end of this year,” said Brad Close, president of NFIB. “The 20% small business deduction allows nine out of 10 street-level job creators to compete, grow their businesses, hire new employees, raise wages and give back to their communities. NFIB is grateful to Senator Daines and Representative Smucker for their continued leadership to prevent the small business tax hike and urges Congress to pass the Main Street Tax Certainty Act to make the small business deduction permanent. »
The 20% small business deduction was created as part of the 2017 tax law to level the playing field between small businesses and large corporations. If Congress fails, taxes will increase on more than 30 million small businesses by the end of 2025. Main Street Tax Certainty Act would make the small business deduction permanent and avoid a massive tax increase on the majority of America’s small businesses.
An economic impact analysis Led by EY (Ernst & Young) continuously measured the impact the 20% small business deduction would have on small businesses. The report concluded that small businesses would flourish by making the deduction permanent, creating 1.2 million new jobs each year for the first ten years and 2.4 million per year each year thereafter. It would also result in a GDP increase of $750 billion in the small business sector over the first ten years and an increase of $150 billion per year after that.
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For 80 years, NFIB has advocated on behalf of America’s small and independent business owners, in Washington, DC, and in all 50 state capitals. NFIB is nonprofit, nonpartisan, and member-driven. Since our founding in 1943, NFIB has been exclusively dedicated to small, independent businesses, and remains so today. For more information, please visit nfib.com.